Chung Yong-jin, chairman of Shinsegae Group, will become chief executive of E-Mart (139480.KS) and Shinsegae Property, two of the group's core affiliates.
Shinsegae Group said Wednesday it had named Chung as co-CEO of Shinsegae Property. Shinsegae Property plans to hold a board meeting to recommend Chung as a registered director, approve his appointment at a shareholders' meeting, and then formally appoint him as co-CEO at a subsequent board meeting.
E-Mart has also designated Chung as co-CEO. After naming him co-CEO during this year's regular executive reshuffle, the company plans to finalize his appointment at next year's shareholders' meeting.
According to Shinsegae Group, Chung's decision to take on the CEO roles reflects his intention to speed up decision-making on key group issues and to directly lead future growth strategy.
"I take seriously the market's demand to bear clear responsibility for the company's management," Chung said. "Going forward, as CEO, I will be evaluated by the board and shareholders."
The decision is also seen as a move to give concrete shape to the group's commitment to reform following the recent controversy surrounding Starbucks Korea. E-Mart is the largest shareholder of Starbucks Korea.
Once Chung takes the helm at E-Mart and Shinsegae Property, the number of affiliates in which he participates as a board member will rise to three. He currently serves as chairman of the board of AG Global Holdings, a joint venture between Shinsegae Group and Alibaba International.
Shinsegae Property in particular is the affiliate responsible for major projects, including the development of Starfield Cheongna and securing land for an AI data center business being pursued with U.S. AI company Reflection AI. Chung personally signed a memorandum of understanding (MOU) with Reflection AI in March.
Shinsegae Group is also strengthening its professional management system. Shinsegae Property has named former development division head Lee Hyung-cheon as co-CEO. Lee will oversee major development projects such as Starfield Cheongna and take charge of improving profitability and managing the organization.
Shin Dong-woo, head of Shinsegae Property's support division, has been named the new CEO of Starbucks Korea. Shin previously served as head of strategic planning at Starbucks Korea and as head of the support division and chief financial officer at Shinsegae Property. He is expected to lead reform efforts to strengthen internal controls and restore trust at Starbucks Korea.
"We will listen more closely to the voices of the market and shareholders and strengthen a responsible management system that is evaluated by management performance," Shinsegae Group said.
